Amendment to Social Insurance Law, Cyprus

About

Country: 
Cyprus
Sectors: 
All
Target Groups: 
employers/purchasers

 

The Ministry of Labour and Social Insurance has introduced several measures to combat undeclared and illegal employment in Cyprus. Among these measures is an amendment to the Social Insurance Law of 2010 specifically to oblige employers to present, whenever requested, a copy of a specific employment attestation for its employees.

 

Background

The amended Social Insurance Law was introduced due to the fact that during inspections, many employers were claiming that they had not been able to register some workers with the Social Insurance Services (even though these workers may have been working for several months). This phenomenon mainly occurs in the construction industry.

Objectives

In February 2012, the Social Insurance Law of 2010 was modified in order to introduce an obligation for the employer to present, whenever requested, a copy of a specific employment attestation for its employees. Among other things, this attestation includes the name, identity card number, social insurance number, employer identification number and the signatures of both the employee and the employer. The attestation form is provided by the Social Insurance Services. This obligation aims to limit the cases of undeclared work.

Specific measures

The employer must submit this attestation to the nearest Social Insurance office no later than the end of the month during which the employee started working. In case of violation of these obligations, the employer is required to pay a fine of €200. If the violation is repeated within 48 hours or repeated in the future, a new sanction of €400 will be imposed. If a violation is reported for the third time, the employer will be then prosecuted in court.

Actors involved

Mixed teams of inspectors.

Outcome of evaluations; lessons and conclusions

Achievement of objectives

This recent measure is expected to yield positive results.

Contacts

Department of Labour Relations at the Ministry of Labour and Social Insurance:

http://www.mlsi.gov.cy/mlsi/dlr/dlr.nsf/index_en/index_en?OpenDocument

Bibliography

Συγκεντρωτική Κατάσταση Επιθεωρήσεων Πρωινών Μικτών Κλιμακίων για την περίοδο 1/1/2012 – 31/5/2012, Υπουργείο Εργασίας και Κοινωνικών Ασφαλίσεων.

Yannis Eustathopoulos, INEK-PEO

 

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